USD/MXN rebounds again near 19.00, approaches 19.20
|- Mexican peso lacks of strength to break the 19.00 strong technical and psychological barrier.
- USD/MXN rebounds from critical support remains in recent range.
The USD/MXN pair is rising on Monday but remain in the recent consolidation range, holding close to monthly lows. Earlier today, the improvement in market sentiment pushed the pair to 19.04, a few pips above the three month low set in October at 19.01. Then it rebounded, erasing daily gains and as of writing trades at 19.16.
The Mexican peso again lost strength near a key technical support located around 19.00. A daily close below the mentioned level could clear the way to more losses, including a test of the 2019 low at 18.74.
In the short-term, the pair continues to move within the mentioned support and 19.20/25 that has become a crucial resistance; the area also includes the 20-day moving average. Above the US Dollar will likely gain momentum and rise to test 19.30.
The Greenback on Monday traded with losses during the Asian session. It then recovered, turning positive across the board, despite weaker-than-expected US data and supported by higher US yields. “Financial markets veered back toward a risk-on mood last Friday, after the U.S. employment report suggested that the slowdown in US labor markets may not have been as pronounced in the 3Q19 as previously thought, while optimism about a potential agreement on phase one of the U.S.-China trade agreement also helps moderate risk aversion,” explained BBVA analysts.
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